Redburn Atlantic Upgrades Advance Auto Parts, Inc. (AAP) from Sell to Neutral

On June 4, 2025, Redburn upgraded Advance Auto Parts, Inc. (NYSE:AAP) from Sell to Neutral and increased its price target from $28 to $45. This reflects a positive outlook for the company’s operational performance and growth opportunities.

Advance Auto Parts, Inc. (NYSE:AAP), a leading automotive retailer, is strategically expanding its store presence while optimizing merchandising and supply chain operations.

Redburn Atlantic Upgrades Advance Auto Parts, Inc. from Sell to Neutral

A manufacturing facility floor filled with an array of automotive parts and accessories.

According to the company’s recent update, approximately 75% of its outlets are located in the markets where it ranks among the top two companies by store density. The company plans to open more than 100 new stores over the next three years, aiming to capture a significant share of the $150 billion total addressable market. It has also improved parts availability by introducing a new assortment framework that has already increased comparable sales growth by 50 basis points in test markets.

Advance Auto Parts, Inc. (NYSE:AAP) is also streamlining its distribution centers by reducing the number to 16 by year-end and focusing on 12 large centers by 2026, which will improve labor productivity and increase operational efficiency. To solidify its supply chain, the company is opening new market hubs, targeting 60 by 2027.

Redburn notes that the company’s strong operational momentum and promising growth prospects, especially in the second half of 2025, should boost earnings growth and support the stock price in the near term.

While we acknowledge the potential of AAP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AAP and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Overlooked Tech Stocks to Buy Now and 12 Best Oil and Gas Penny Stocks to Invest in Now.

Disclosure. None.